1998 (7) TMI 155 - AT - Customs

Imported system classified as micro-computer for tape preparation with advanced functionalities. Customs notification inapplicable.

The Appellate Tribunal upheld the classification of the imported system as a micro-computer for tape preparation, based on its advanced functionalities ... Computer - not eligible for benefit of Notification No. 237/88-Cus Issues:Classification of the imported system as a micro-computer or a transcribing machine for transferring coded information.Analysis:The dispute in the present matter revolves around the classification of the imported system, namely, a set system P.D. Fanuc Tape Cut L Machine, along with Fanuc Tape Cut Wire Cut Electric Discharge Machine. The Original Authority categorized the system as a micro-computer, emphasizing its functionality beyond simple transcribing. On the contrary, the lower appellate authority viewed it as a transcribing machine transferring coded data between different mediums. The lower authority highlighted the system's operation through an automatic programming language known as FAPT, functioning independently of the main machine for output.The Revenue reiterated the Asst. Collector's findings, describing the imported system as a low-cost desk-top automatic N.C. Tape preparation system with various features and capabilities. The system was detailed to include components like a keyboard, paper tape punch, paper tape reader, graphic display, main control unit, magnetic tape cassettes, and software applications for wire cut DDMS, among others. The system's specifications indicated it as a micro-computer with advanced functionalities and processing capabilities.Considering Notification 237/83-Cus., dated 18-8-1993, applicable to specific goods like magnetic and optical readers, paper tape readers, printers, and more, it was observed that the notification pertained to computer peripherals, not complete computers. The lower appellate authority's findings highlighted the system's autonomous operation through an automatic programming language, indicating its role in processing data, not just transcribing. Consequently, the imported system was deemed a micro-computer for preparing tapes for use in the Fanuc Tape Cut Wire Cut Electric Discharge Machine.In conclusion, the Appellate Tribunal upheld the Asst. Collector's classification, determining the imported system as a micro-computer with advanced functionalities for tape preparation. Consequently, the benefit of Notification 237/83-Cus., dated 18-8-1993, was deemed inapplicable to the disputed item, leading to the appeal of the revenue being allowed, and the impugned order set aside.